November 7, 2008 - Time to make revisions to the Senate's Version of "The Family Smoking Prevention and Tobacco Control Act" (H.R.1108/S.625). On February 15, 2007, Senators Edward Kennedy (D-MA) and John Cornyn (R-TX) and Representatives Henry Waxman (D-CA) and Tom Davis (R-VA) introduced legislation to grant the FDA broad authority to regulate tobacco products. On July 30, 2008 House of Representatives version of this legislation passed by roll call vote - totals were 326 Ayes, 102 Nays, 6 Present/Not Voting.

We know now that the legislation that the senate will consider represents the results of a negotiation between the tobacco control group Campaign for Tobacco-Free Kids and Philip Morris (PM) - the biggest player in the tobacco industry. We worry that the legislation will be flawed because the biggest player in the tobacco industry has been directly involved in writing the bill that regulates their industry.

Mike Szymanczyk now the CEO of Altria, Inc., the parent of Philip Morris Tobacco USA, brags to investors that they are directly involved in this legislation (Remarks, Investor Presentation, 3/11/2008)

As Senator Michael B. Enzi (R-WY) has pointed out, "Poison peddlers shouldn’t get to decide how we as responsible legislators fight the war against their deadly products."

PM tells people they are a socially responsible company but then go out and buy cigar maker John Middleton, Inc. famous for Black & Mild cigars (wine being its latest flavor) very popular among young African Americans. While active in the process of writing the bill, PM has its sales force going around to c-stores demanding the majority of prime space behind the checkout counter for their products. We all know the more cigarette-marketing teens are exposed to in retail stores, the more likely they are to smoke, and that restricting these retail marketing practices would reduce youth smoking. Also, all the tobacco advertising in c-stores undermines attempts for adults to quit smoking.

All tobacco products with no exceptions are highly addictive and dangerous to health; as the World Health Organization tells us "Tobacco is Deadly in Any Form or Disguise." This conclusion was recently reinforced by Michael Leavitt, Secretary of U.S. Department of Health and Human Services when he wrote: "Tobacco products are not safe and cannot be made safe and there is no medically established public health benefit associated with tobacco" in a letter to Joe Barton, R-Texas the senior Republican on the Senate's Energy and Commerce Committee. In the legislation all tobacco products must be considered equally.

Many concessions have been granted to get tobacco companies to buy into this legislation weakening the bill even further. UST Inc., the biggest U.S. maker of smokeless tobacco products and the North American unit of Swedish Match AB which also sells smokeless tobacco announced they would support the bill. The bill was amended to give smokeless companies the ability to give away free samples to adults under limited circumstances which hadn't been allowed in earlier versions of the bill. Some small tobacco companies were expected soon to announce they were supporting the House bill. The move comes after they won a promise of changes including extra time before certain regulations would apply to them.(Support Grows for Tobacco Bill By Anna Wilde Mathews, The Wall Street Journal, 4/1/2008) The National Association of Convenience Stores dropped it's opposition to the bill after promised concessions were made which include an agreement that stores found to have sold tobacco to underage consumers could have some fines reduced if they had training programs in place to educate staff about age requirement. (Retailer Concerns Addressed? Group withdraws opposition to House FDA tobacco regulation bill, April 1, 2008)

For Ted Kennedy's sake alone let's have a good piece of legislation that will protect our children for years to come from the ravages of nicotine addiction.

November 7, 2008 - U.S. District Court Judge Claudia Wilken on Thursday, November 6, 2008 denied a motion by Philip Morris USA Inc. (PM) for a preliminary injunction that would have put on hold the city of San Francisco's ban on tobacco sales by pharmacies until the cigarette company's lawsuit against the city is resolved.

Judge Wilken said the ban doesn't impinge on the company's free speech rights because it can still advertise at drug stores. However, Wilken admitted, "Maybe it's not as interesting to advertise where you can't sell. Wilken said she thinks the PM's free speech argument is weak because "cigarettes aren't a method of communication like a book." And Wilken said she doesn't think the law violates PM's First Amendment rights because "the regulation is that you can't sell cigarettes, not that you can't advertise cigarettes."

The ordinance is the first of its kind in the nation. It was approved by the San Francisco Board of Supervisors in July, signed by Mayor Gavin Newsom in August and went into effect Oct. 1.

PM argued in court filings that the city's regulation violates the First Amendment because it effectively forces tobacco companies to pull the advertising that accompanies its products in drug stores. PM's attorney, Daniel Collins, complained that advertising cigarettes at stores where they can't be sold is "not a practical solution for retail." Collins said the ban on sales "has an undeniable effect" on the company's revenues.

San Francisco Deputy City Attorney Vince Chhabria said that if governments can be prevented from regulating products by equating products with advertising then they would be able to ban anything.

Wilken then denied the company's motion and set a case management conference for January 6, 2009.

After the hearing Collins declined to comment on whether PM will appeal Wilken's ruling. Jack Marshall, a spokesman for the PM, said by phone, "We will wait for the court's written ruling and will examine our legal options at that time and in due course."

Chhabria said he expects that PM will file an appeal with the Ninth Circuit Court of Appeal in San Francisco because "I'm not sure what else there is to fight about here" in Wilken's courtroom. Chhabria said if PM doesn't file an appeal, the city will file a motion for judgment that would ask Wilken to dismiss the company's lawsuit, which was filed on Sept. 24, shortly before the ban went into effect.

FDA Regulation of TobaccoTo the Editor: In 1998, Mark Berlind, chief legislative counsel of Philip Morris, drafted specifications for regulation of tobacco products by the Food and Drug Administration (FDA) that would ensure the continuing profitability of the Marlboro brand, provide a shield against litigation, and protect cigarettes from competition from less-toxic, smokeless tobacco products.1 The current Family Smoking Prevention and Tobacco Control Act (H.R. 1108/S. 625) discussed by Brandt in his Perspective article (July 31 issue)2 was negotiated between Matthew Myers of the Campaign for Tobacco-Free Kids and Mr. Berlind3 for purposes of securing an FDA bill with full support from our nation's largest cigarette maker. The text conforms to Mr. Berlind's 1998 specifications.

Despite the optimistic wording of the summaries used to attract endorsement and sponsors, we believe that this bill is so distorted in favor of Altria–Philip Morris that, if passed in its current form, it will do more harm than good in terms of future levels of teen smoking and future rates of tobacco-related illness and death. It can protect cigarettes or it can protect the public's health. It cannot do both.

November 6, 2008 - In these difficult economic times it's time to pass the legislation for expansion of the highly successful SCHIP (State Children's Health Insurance Program) program to provide health care to low-income children. The $35 billion expansion would enable the joint federal/state program to add 3 million children to its rolls, which currently includes about 6 million children whose families couldn't otherwise afford it. Bethany Wilkerson - SCHIP member..

Congressional Democrats scrapped plans for a third vote on expansion of SCHIP. President Bush vetoed two earlier versions of the legislation, which he denounced as a dangerous step toward “government-run health care for every American,” and the House sustained those vetoes.

With the Obama administration taking office in about 70 days it's a perfect time to bring back this legislation.

The funding of the $35 billion expansion would come from a 61 cents increase in the federal excise tax on cigarettes, which is now at 39 cents a pack. The new rates on Other Tobacco Products would be: Large Cigars: from 20.719% of wholesale price to 42.820% of wholesale price; Small Cigars: from 3.65 cents per 20 to 9.34 cents per 20; Moist Snuff: from 4.8 cents per 1.2 ounce to 12.3 cents per 1.2 ounce; Chewing Tobacco: from 1.3 cents per ounce to 3.3 cents per ounce; Pipe and RYO: from 1.0969 per lb. to 2.8081 per lb. (Cigar Association - Virginia Archive, July 13, 2007.)

"Studies show that every 10 percent increase in the price of cigarettes reduces youth smoking by seven percent and overall cigarette consumption by four percent," the groups wrote. "By discouraging smoking through an increase in the tobacco tax and using the resulting revenues to improve enrollment in children's health insurance programs, we are creating a win-win proposition in support of our children's health." (Letter to Senators Max Baucus and Charles Grassley May 22, 2007)

This just in: The twice-vetoed State Children's Health Insurance Program (S-CHIP) bill, funded by an increase in the federal excise tax on tobacco, will likely be among the first three pieces of legislation a President Obama signs into law, John Eichberger, vice president of government relations for the National Association of Convenience Stores (NACS) predicted. (Blue Crush With Democratic White House and Congress, retailers anticipate taxing times by Samantha Oller, CSP Daily News, 11/6/2008)Read more...

November 6, 2008 - Malaysia to hike cigarette prices to fight smoking. KUALA LUMPUR -- Malaysia will fix a minimum price of 6.00 ringgit (US$1.70) for a pack of 20 cigarettes to discourage smoking, a senior health ministry official said Wednesday. “The price has already been set and we are just waiting for it to be gazetted by the end of this year,” the health minister’s press secretary Lim Chau Leng told AFP.

“This minimum price will help discourage youngsters from buying cigarettes,” he said. Malaysia imposes high taxes on cigarettes to discourage demand and a packet costs about 9.00 ringgit(US$2.55) but cheaper brands are available for 4.50 ringgit(US$1.27).

November 5, 2008 - Antismoking organizations (American Cancer Society Action Network, the American Heart Association, the American Lung Association, the American Medical Association and the Campaign for Tobacco-Free Kids) register their protests over Philip Morris USA’s plans to introduce a new Virginia Slims cigarette product with heightened appeal for young women.

Philip Morris USA has said it will launch new Virginia Slim “Super Slim” cigarette in the first quarter of 2009. The cigarette, in both light and ultra light flavors, is smaller in diameter than a standard cigarette and will come in a narrow pink rectangular box with squared ends. While the box will hold the standard 20 cigarettes, it will be slimmer than a standard pack and will apparently be marketed as a “Purse Pack”.

A joint statement of these health-advocacy non-profit agencies stated that “Philip Morris shows contempt for women and their health by putting a pink gloss on a product that causes lung cancer and heart disease, two of the leading killers of women.”

November 5, 2008 - Republic Technologies International, headquartered in Perpignan, France, has announced the pending acquisition of Swedish Match UK. In the transaction included are the businesses of smoking papers and filters, the Swan brand, and the distribution of lighters, matches and fire products. Swan has been a market leader in the hand rolling cigarette market manufacturing a range of high quality filter tips, cigarette papers, and lighters. Republic Technologies International is a member of the Republic group and manufacturer and distributor of smoking accessories worldwide.

The transaction is subject to U.K. Office of Fair Trading approval. “This is a great move in what we believe is the right direction,” says Philippe Parcevaux, president of Republic Technologies International.

The Republic Group also includes TOP Tobacco L.P., the U.S.’s largest RYO tobacco manufacturer located in North Carolina (TOP¨ and Drum¨ brands); and Republic Tobacco L.P., the U.S. headquarters, distribution and marketing arm based in Glenview, IL. (Republic Group’s Acquisitiontobonline.com News & Trends March/April 2004.)

November 4, 2008 - Children and adult members who live with adult smokers are more likely to be underfed and undernourished, a new study finds. "We know that there are long-term consequences of food insecurity for children. They are more likely to do poorly in school, to have iron deficiency and anemia, and to have behavioral and social problems," said study author Dr. Michael Weitzman, chairman of pediatrics at New York University School of Medicine.

Looking at data on 8,817 households gathered in national surveys by the U.S. Centers for Disease Control and Prevention, it was found that 15 percent of adults and 11 percent of children reported food insecurity within the past year, with 6 percent of adults and 1 percent of children experiencing severe food insecurity. This meant they went to bed hungry, because there wasn't enough food in the house. [Food insecurity - "it is a standardized scale measuring how many times a household cannot give children the food they want, how many meals they skip, how often they go to bed hungry," Weitzman said.]

The study found that 23 percent of households with children had at least one smoker, with the incidence higher -- 32 percent -- in low-income households. In those households with a smoker, 17 percent of children were food insecure, compared to 8.7 percent of those children in nonsmoking households. Severe food insecurity was reported for 3.2 percent of children in smoking households, compared to 0.9 percent of those living in households with no smokers. Because families with at least one smoker spend an estimated 2 percent to 20 percent of their income on tobacco, it's quite likely that smokers' habits drain the money needed to provide adequate food, according to background information with the study.

November 3, 2008 - As reported Philip Morris is now giving $1 off a carton of Marlboro or 10 cents a pack. This was only suppose to be for one month prior to the December gift packs of Marlboro - buy one and get another as a gift. The $1 off per carton has now been extended to the end of the year.

Click on image to enlarge..In the picture you may have noticed that a pack of Pall Mall is $2.59. We have reported that this c-store has an agreement with R.J. Reynolds (RJR) never to sell a cigarette for less than the price of Doral - now at $2.99 a pack. However Pall Mall, is also an RJR product and along with the Camel family are the only remaining investment brands.

These days it almost seems like RJR is dumping Camel SNUS cans on the retail scene. As we reported at least one c-store owner gets approximately 25 free cans of Camel SNUS to pass out to customers that they may express an interest in trying it. The owner tells us it's hard to find anyone wanting to try the stuff. On the rare occasion that a patron asks for a can of Camel SNUS - the owner asks if they want all the cans at no charge.

Images below - promotion buy any RJR product and get a free can of Camel SNUS - note this is the 1st time the wording "WORK FRIENDLY" is used in the labeling. Click on image to enlarge.

November 3, 2008 - The Summary Court in the Eastern Province has sentenced a man to 50 lashes for smoking on board non-smoking Saudi Arabian Airlines (SAA) flight from Dammam to Riyadh. The man kept puffing his cigarette ignoring repeated warnings from flight attendants to stop. His smoking also set off the smoke alarm, causing panic among passengers. When the flight landed at King Khaled International Airport in Riyadh, flight security staff handed the man over to the authorities.

In 1999, SAA banned smoking on its flights between the Kingdom and the GCC states (Gulf Cooperation Council includes: Saudi Arabia, Kuwait, Bahrain, Qatar, the United Arab Emirates, and the Sultanate of Oman) and other Middle Eastern and African countries. The ban on smoking on SAA’s domestic flights took effect in 1987. – Okaz

November 2, 2008 - A new anti-smoking bylaw for Surabaya, Indonesia’s second-largest city, will impose sanctions on people caught smoking in public areas taking effect in October 2009. Under the regulation, public spaces are defined as any public area, but authorities will most probably focus on ports, bus terminals, railway stations, public transportation vehicles, government buildings, hospitals, hotels and campuses - which may designate limited areas for smoking. Violators will face maximum fines of IDR 50 million (EUR 3,944) and/or three months' imprisonment for anyone caught smoking in public spaces. (Council approves sanctions for smokersTobacco Journal International, 10/25/2008)

Amin Subarkah, chairman of the East Java Indonesian Tobacco Farmers Association (APTI), said that tobacco growers and cigarette makers and workers have had no objections to bylaws on smoking restrictions in public spaces to prevent children from smoking. Referring to a recently passed bylaw restricting smoking in public spaces in Surabaya and a similar municipal circular passed in Malang, Amin said tobacco farmers would also campaign for the bylaw but city administrations should also pay more attention to the fate of millions of tobacco farmers. (Tobacco farmers appreciate bylaws restricting smokingTobacco Journal International, 10/29/2008)Just back on September 1, 2008 the East Java branch of the APTI urged the provincial chapter of the MUI (Indonesia Ulemas Council (quasi-government council of Muslim scholar - give guidance on many issues including smoking for Moslems) to reject a proposed edict that would forbid smoking. "It would be more human if the Indonesian Ulemas Council (MUI) switched to a regulation supporting smoking," Abdum Hafidz Azis said at a meeting with the council's executives in Surabaya. Abdul is secretary of the Association of Indonesian Tobacco Farmers (APTI) East Java branch. (Tobacco farmers urge MUI to reject anti-smoking edict, The Jakarta Post Surabaya, 09/01/2008)

Indonesia leaders continue to worry that any tobacco control initiatives that would be enforced may lead to the demise of the tobacco industry. Government officials are concerned that public smoking bans and a further rise in the excise would hurt the cigarette industry and risk the jobs of its millions of workers. The government receives about six percent of its revenue from cigarette production and sales. About one-third of the nation's 230 million people smoke some start as young as five government figures show. In 2005 Philip Morris International paid five billion dollars to acquire a 97 percent stake in H.M. Sampoerna, the third largest cigarette maker in Indonesia. Back in July 2007 Sampoerna began selling a clove-flavored cigarette called Marlboro Mix 9 containing 30mg tar and 1.8mg nicotine. Clove cigarettes are very popular in Indonesia that only one smoker out of 10 prefer standard cigarettes. Indonesia, the world's fifth largest tobacco market is the only nation in Asia which has NOT signed or ratified the WHO Framework Convention on Tobacco Control (FCTC) - the global anti-tobacco treaty.